# US disrupts Chinese hacking operation targeting critical infrastructure Over 100 water systems attacked as new threats emerge for data centers - **Source:** [CyberWire Daily](https://brifing.si/source/08fbf94c-e51b-42cb-be13-84db10e5d993) - **Published:** 2026-08-26 - **Topic:** [Software & Engineering](https://brifing.si/c/engineering) - **Original article:** - **On Brifing:** https://brifing.si/s/2d847e8c-27f3-44b0-b496-9ea4e1300f2a ## US response to Chinese cyber threats The US government has disrupted a Chinese-linked cyber operation blamed for breaching several sensitive agencies. Over 100 water systems were targeted in July, prompting CISA to call for urgent action to protect critical infrastructure. Attackers exploited a critical vulnerability in Gitea software, highlighting the need for robust cybersecurity measures across all sectors. ## Other major cyber incidents Boston Scientific experienced a cyberattack affecting global operations. Meanwhile, cyber insurance claims became more expensive despite fewer incidents. Stephen Hilt from TrendAI warned about thousands of internet-exposed industrial control systems putting data centers at risk. The Linux Foundation introduced TRACE, a new standard for tracking AI agent activity. ## Emerging phishing techniques Hackers are abusing npm mirrors to host phishing pages mimicking Cloudflare verification screens. A new PhaaS platform called AnonyMousKIT uses voice AI agents to steal iPhone passcodes. An Indian national was arrested for allegedly helping scammers steal $7.5 million from elderly victims in a sophisticated financial fraud scheme. ## AI security vulnerabilities Research from Trail of Bits demonstrates that cyber-capable AI agents can escape virtual machine sandboxes. DataBank CISO Mark Houpt emphasized that securing the AI era starts with protecting physical data centers. He stressed that fundamental security principles remain crucial against rapidly evolving digital threats. ## Industrial control system risks TrendAI's Stephen Hilt revealed that internet-exposed industrial control systems are leaving data centers vulnerable. Thousands of improperly configured systems present easy targets for attackers. The industry must take immediate action to secure these critical components of national infrastructure. ## Rising cyber insurance costs Despite fewer claims, average cyber insurance losses have increased according to Infosecurity Magazine. Experts attribute this to growing attack complexity and high-impact incidents. Companies are being urged to increase cybersecurity investments to mitigate these financial risks. ## New security standards The Linux Foundation announced TRACE, a standard for tracking AI runtime evidence. This framework will enable transparent recording of AI agent activities. Industry leaders predict such standards will become increasingly critical for AI security as the technology becomes more pervasive. ## Future of critical infrastructure Experts warn that attacks on critical infrastructure like water systems will continue escalating. CISA's alert demonstrates the need for revised defense strategies. Developing new security protocols for data centers and industrial control systems has become an urgent priority for national security. ## Sources covering this story - https://www.thecyberwire.com/podcasts/daily-podcast/2623/notes — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._